Refer to the Above Diagram (B), Assume That DL Represents

question 36

Multiple Choice

Refer to the above diagram (b) , assume that DL represents low demand for the Turbo-car, DM represents the medium level of demand and, DH represents the high level of demand for Turbo-car and, Fancy Auto's optimal output level is 900 cars per week.If the Fancy Auto Company has a fixed price policy of $37,000 per vehicle:

• A)the quantity demanded will be 900 cars per week if the demand is D_L.
• B)the quantity demanded will be 700 cars per week if the demand is D_L.
• C)the quantity demanded will be 1150 cars per week if the demand is D_L.
• D)the quantity demanded will be 1150 cars per week if the demand is D_M.

---

Definitions:

Agricultural Act

Legislation concerning the agricultural sector, typically involving policies on farming, subsidies, crop insurance, and food safety, among other areas.

Marketing Loan Program

A federal farm subsidy under which certain farmers can receive a loan (on a per-unit-of-output basis) to plant a crop and then, depending on the harvest price of the crop, either pay back the loan with interest or keep the loan proceeds while forfeiting their harvested crop to the lender.

Food, Conservation, and Energy Act

A comprehensive U.S. law enacted periodically that covers a wide range of agricultural and food programs, including farm subsidies, nutrition assistance, and land conservation efforts.

Crop Price

The amount of money that farmers receive for the agricultural products they produce, which can vary based on supply and demand.